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The following is issued on behalf of the Communications Authority:
This press release summarises the decisions of the Communications Authority (CA) following its 42nd meeting in June 2015:
Changes in shareholding structure of Hong Kong Commercial Broadcasting Company Limited (CRHK)
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The CA approved the application for changes in the shareholding structure of CRHK arising from the disposal of 81.5 per cent of shares in CRHK held by the late Mr George Ho to his son, Mr George Joseph Ho.
In approving the application, the CA was satisfied that the shareholding changes would not give rise to regulatory concerns and that CRHK would continue to comply with various applicable regulatory requirements under the Telecommunications Ordinance (Cap. 106) and its sound broadcasting licence and be able to honour the investment and programming commitments it had made under its licence upon completion of the shareholding changes.
Surrender of licences
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The CA approved the application of Asia Times Online Limited to surrender its non-domestic television programme service licence with effect from January 19, 2015. The CA also approved the applications of Goodnews Communication International Limited and Swisscom Hospitality Hong Kong Limited to surrender their other licensable television programme service licences with effect from December 3, 2014, and April 28, 2015, respectively.
The CA noted that the surrender of licences was a commercial decision of the three licensees. Following the surrender of the above-mentioned licences, there are 18 non-domestic television programme service licensees in Hong Kong providing more than 200 satellite television channels targeting viewers in the Asia-Pacific region, and 25 other licensable television programme service licensees providing television programme services to hotels in Hong Kong.
Breach of licence condition by China Satellite TV Group Company Limited (CHTV)
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The CA decided to seriously warn CHTV for failing to provide service in accordance with its Licensee's Proposal, which contravened Condition 10.1 of its non-domestic television programme service licence (CHTV's Licence). The CA also decided to issue a direction under section 24(1) of the Broadcasting Ordinance (Cap. 562) directing CHTV to resume its service by June 28, 2015 (the Direction).
Under CHTV's Licence, unless with the approval of the CA, CHTV is required to provide a non-domestic TV service comprising one 24-hour general entertainment channel in accordance with the Licensee's Proposal it submitted when applying for the licence. CHTV has suspended its service since July 15, 2014, and submitted that it would not be able to resume its service until June 28, 2015.
The CA considered that it was incumbent upon CHTV to provide a service in accordance with its Licensee's Proposal at all times and to seek the CA's waiver for alternative arrangements if necessary. The suspension of service would have lasted for more than 11 months by the time CHTV resumes its service by late June 2015 and CHTV has shown little progress in resuming its service so far. It has failed to show initiative to consider alternative arrangements to deal with various difficulties it encountered and to take concrete steps to ensure early resumption of its service.
Taking into account the above and CHTV's representations, the CA decided that CHTV be seriously warned to observe the relevant licence conditions more closely. As CHTV has yet to resume its service, the CA further decided to issue the Direction to CHTV requiring it to resume its service by June 28, 2015. Any failure on the part of CHTV to comply with the Direction may lead to the imposition of heavier sanctions by the CA.
Breach of licence condition by APT Satellite TV Development Limited (APT)
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The CA decided that APT was in breach of Condition 10.1 of its non-domestic television programme service licence for non-compliance with the Licensee's Proposal regarding its shareholding and ownership structure, as it implemented changes to its shareholding and ownership structure from March 7, 2013, to June 23, 2014, without the requisite approval of the CA. Taking into account APT's representations and the duration, severity and nature of the breach, the CA decided that APT should be strongly advised to observe the relevant licence conditions more closely.
Non-compliance with subtitling requirement on news programme by Television Broadcasts Limited (TVB)
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The CA decided that TVB was in breach of Condition 3.1 of the First Schedule to its domestic free television programme service licence due to its failure to provide English subtitles in certain parts of the programmes "News at Seven-Thirty" and "News Roundup" broadcast on Pearl Channel on March 4 and 16, 2015, respectively.
The CA noted that the lapses were due to an operational fault and mechanical failure and that the presentation and comprehensiveness of the two news programmes concerned were not seriously affected by TVB's failure to provide English subtitles ranging from 2.3 minutes to 4 minutes in duration. Having considered TVB's representations and that TVB had taken the initiative to report the lapses to the CA and pledged to exercise greater care to prevent similar lapses from occurring in future, the CA decided that TVB should be advised to observe the relevant requirement more closely.
Ends/Tuesday, June 9, 2015
Issued at HKT 16:13
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